Spark Trader Limited reports:
The World Gold Council (WGC) expects gold to shine in September. FX Street analysts are not sure.
In July and August the WGC released two more interesting documents, following three previous reports. The first document is the Gold demand Trends report for the second quarter of 2021. The report shows that gold demand was almost flat in the second quarter (year on year), but fell by 10.4% in the first half of the year. Moreover, inflows into gold ETFs were small in the second quarter and July, only partially offsetting the large outflows in the previous quarter.
As a result, investor sentiment turned positive in the second quarter, which helped gold rebound after the first quarter.
Indeed, as the chart below shows, gold plunged 10% in the first quarter of 2021, followed by a 4.3% rebound in the second quarter, but not enough to offset the hit in the first three months of the year. Gold rose 3.6 per cent in July, but most of that gain was wiped out in August, when it fell 2.1 per cent in a single day on August 6 alone. As a result, gold is down more than 6 per cent so far this year.
Reprint indicated source：Spark Global Limited information